India's largest mutual fund, UTI Mutual Fund, announced on Tuesday the launch of an open-ended equity oriented scheme, which will primarily invest in stocks that are "leaders" in their industries and said it would come out with "several" new products to satisfy the varied investment needs of customers.
"UTI Mutual Fund begins the new year with the launch of a new wealth creation opportunity for investors. During the year UTI MF will be adding several new schemes to the product basket to satisfy the varied investment needs of investors," company CEO and Managing Director UK Sinha said.
The uniqueness of UTI-Leadership Equity Fund is to invest 'both' in the 'existing leaders' and 'potential leaders' of the economy," company CEO and Managing Director UK Sinha said.
The new scheme, UTI-Leadership Equity Fund, will open on January 9, close on January 30 and reopen for continuous purchase and redemption from February 28.
The fund will invest in equity and equity related instruments of 'leaders' to the extent of 65-100 per cent and 'potential leaders' to the extent of 0-35 per cent. It may also invest in debt and money market instruments to the extent of 0-10 per cent.
"The scheme will invest at least 65 per cent of its corpus in the top five leading companies of an industry in terms of sales turnover. The scheme will also invest up to 35 per cent in companies that are potential leaders in order to profit from the probable upside potential in the stock of these companies," UTI AMC chief investment officer AK Sridhar said.
{{/usCountry}}"The scheme will invest at least 65 per cent of its corpus in the top five leading companies of an industry in terms of sales turnover. The scheme will also invest up to 35 per cent in companies that are potential leaders in order to profit from the probable upside potential in the stock of these companies," UTI AMC chief investment officer AK Sridhar said.
{{/usCountry}}The minimum initial investment is Rs 5,000, while the subsequent investment is Rs 1,000 and in multiples of Re 1 thereafter. The scheme will offer two options -- Growth and Dividend with payout and re-investment facility.
The entry load under the scheme for less than Rs 2 crore of investment is 2.25 per cent, while the exit load is nil. For an investment of more than Rs 2 crore, the entry load is nil and the exit load is 0.50 per cent if exited within 6 months from the date of allotment. The scheme's benchamrk index is S&P CNX Nifty.